Meta accused of using AI to unfairly target workers in major layoff lawsuit

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| Published July, 15 2026 | Updated
Web Desk: Meta is facing a major legal challenge after former employees claimed the company used artificial intelligence to unfairly select workers for layoffs. The company has strongly denied the allegations.

A group of 26 former Meta employees has filed a federal lawsuit in Oakland, California, accusing the tech giant of using biased AI systems during its latest round of job cuts.

According to the lawsuit, the employees claim Meta AI layoffs relied on automated systems that unfairly targeted workers with disabilities, serious medical conditions, pregnancies, or those on approved family and medical leave.

They argue the AI discrimination lawsuit exposed vulnerable employees to unfair treatment.

The complaint says Meta reduced nearly 10% of its global workforce, affecting around 8,000 employees.

During the process, the plaintiffs allege the company used AI-powered performance tracking tools to help identify employees for dismissal.

The lawsuit claims the AI system measured workers mainly through digital productivity data. It reportedly tracked employees’ activity levels, work output, and how often they used the company’s internal AI development tools.

According to the former employees, those who were away on approved medical leave naturally had lower activity levels.

They claim the system interpreted this reduced activity as poor performance, causing the Meta AI layoffs to disproportionately affect workers protected under labor laws.

Read Also: Meta to put its Iris AI chip into production in September

The plaintiffs, who are from six US states, argue that the process violated both federal and state employment laws that prohibit discrimination against employees with disabilities or those taking legally approved leave.

They say the AI discrimination lawsuit could become one of the first major legal cases challenging the use of artificial intelligence in large-scale layoffs.

The employees have asked the court to temporarily stop the layoffs before their cases move into private arbitration. They want the court to prevent the affected dismissals while the legal dispute continues.

Meta has rejected the allegations and insists that the Meta AI layoffs were not controlled by artificial intelligence.

A company spokesperson described the claims as “without merit” and said workforce decisions were made by people, not AI. The spokesperson added that automated systems did not have the authority to decide who would lose their jobs.

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